In First Since 2015, Bitcoin’s Price Is Testing a 200-Week Average


0

The pace of bitcoin’s ongoing sell-off is setting new records with every passing day, the latest being its test of a key long-term moving average for the first time in three years.

Indeed, the world’s most valuable cryptocurrency network fell below its 200-week exponential moving average (EMA) of $4,180 yesterday, marking the first break of the crucial support since August 2015. Back then, BTC was changing hands around $220, according to Bitstamp data.

The breach of long-term support, however, was short-lived as record low readings on the relative strength index (RSI) likely put a bid under BTC, helping it regain some poise.

At press time, BTC is changing hands at $4,440, having clocked a 14-month low of $4,048 yesterday.

Notably, the recovery has established the 200-week EMA as the level to watch out for in the near-term. The already bearish technical setup would be bolstered further if the cryptocurrency finds acceptance below the long-term EMA support, leading to a deeper drop below the psychological support of $3,000.

Weekly chart

As can be seen above, the 78.6 percent Fibonacci retracement of the rally from 2015 lows to 2017 highs lines up at $4,328 – just above the 200-week EMA of $4,180. So, it seems safe to say that the area between $4,100 and $4,350 is packed with key support lines.

The chart also shows that a break below the 200-week EMA could prove costly as the next major support is seen directly at $3,130 – the widely followed 200-week simple moving average.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

image via Shutterstock; Charts by Trading View


Like it? Share with your friends!

0

What's Your Reaction?

hate hate
0
hate
confused confused
0
confused
fail fail
0
fail
fun fun
0
fun
geeky geeky
0
geeky
love love
0
love
lol lol
0
lol
omg omg
0
omg
win win
0
win
coindesk

Choose A Format
Story
Formatted Text with Embeds and Visuals
Video
Youtube, Vimeo or Vine Embeds
List
The Classic Internet Listicles
Open List
Submit your own item and vote up for the best submission
Countdown
The Classic Internet Countdowns
Poll
Voting to make decisions or determine opinions
Ranked List
Upvote or downvote to decide the best list item
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Meme
Upload your own images to make custom memes
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format